PRESS RELEASE

Mumbai, October 3, 2001

Hutchison affiliated companies in India, Hutchison Max Telecom Limited (Mumbai), Sterling Cellular Limited (Delhi), Fascel Limited (Gujarat) and Usha Martin Telekom Limited (Kolkata) together have touched the landmark of one million subscribers. This was confirmed by Mr. Asim Ghosh, Managing Director, Hutchison Max Telecom Limited.

It marks a quiet salute from the barometer that matters most in today's dynamic cellular service industry: the customer.

This landmark also underlines a strong commitment that dates back several years. When Hutchison started operations in Mumbai in 1995, the scenario was not encouraging for the faint-hearted. Pessimists felt the very concept of cellular telephony would not gain mass acceptance, so essential to sustain long-term growth.

But persistence and resilience have been the hallmark of Hutchison operations in India, as much as speed and efficiency.

"Hutchison has driven growth in segments that have yielded the highest returns keeping customer-sensitivity and shareholder value in mind. The customer has reposed his faith in us and we have responded by being steadfast in our approach, which is honest, straightforward and in the best interest of the consumer. These values permeate the entire organisation", said Mr. Ghosh.

Hutchison has reached one million consumers by the dint of hard work and commitment to building a long-term business in the country. Nearly 70% of the million subscribers today are self-acquired. "We believe in organic growth, focussing on the fundamentals of business and in steady growth. Each Hutchison affiliate is self sustaining, but shares experiences which benefit the whole group".

Between January and August 2001, the subscriber base of Hutchison affiliated companies grew by 54%. The industry growth in the same period was only 46%. Even in the metro circles, where three of Hutchison's four affiliates are located, Hutchison bested the 47% metro circles growth rate.

From the very inception, Hutchison has tried to expand the overall market. Investments reflect the long-term commitment. Hutchison had planned that investments would be made when opportunities arose. "The shareholders have put in large investments in the country and are continuing to do so. This is testimony to their commitment to the business," asserts Mr. Ghosh. The shareholders have an equity investment of US $ 1 billion in operations in India and have recently invested US$ 100 million for licenses allotted in Andhra Pradesh, Chennai and Karnataka circles.

The group has identified and nurtured several pillars that will sustain growth and give it a real competitive advantage: world-class customer service, innovative value-added services and reliable technology.

Not for nothing has Hutchison recently been rated by an independent survey as "second to none on transparency, organisational ethics, social responsiveness, service quality and customer satisfaction". This researched article (India's Most Respected Companies-Sectoral Snapshots) appeared in Businessworld dated 24 September 2001.

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